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4. A Value Line Investment Survey report on Honda Motor Co. is attached. In this question, we would like to apply a two-stage DDM to
4. A Value Line Investment Survey report on Honda Motor Co. is attached. In this question, we would like to apply a two-stage DDM to "verify" the current stock price. First, let us find some relevant information from the report. Value Line provides explicit dividend forecasts over the relative short term, with dividends rising from s.9o in 2017 to si.1 in 2020. We can obtain dividend inputs for this initial period by using the explicit forecasts for 2017-2020 and linear interpolation for the years between: (A) (4 pts) d2o8 - d2019 Hint: To calculate the dividend in 2018 and 2019, you need to find the change in dividends between 2017 and 202o, and equally spread the change into 3 time intervals: 2017-2018, 2018-2019, and 2019-2020. That is, (1.1-0.9/3 is the increment from 2017 to 2018 and from 2018-201g, resnectivelv.l
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